Shadow Treasurer Rob Lucas said today that thousands of struggling home buyers would be outraged at the ‘out of touch’ comments on housing affordability made by Treasurer Kevin Foley.
“I don’t agree with the argument that stamp duty is affecting housing affordability.”
K. Foley, The Australian (March 20, 2007)
“Mr. Foley is living in ‘cloud cuckoo land’ if he doesn’t understand that his broken promises and massive increases in stamp duty are hurting struggling families and helping drive first home owners out of the market,” Mr. Lucas said.
“Having promised not to increase taxes, Mr. Foley in his first budget increased stamp duty rates by up to 25 per cent on all properties over $200,000.
“Home buyers in South Australia now pay the third highest stamp duty rates in the nation and incentives for first home owners are close to the worst in the nation (see attached table).”
This table shows that stamp duty for a first home buyer purchasing a $300,000 property is the highest in the nation – $11,330 in South Australia, compared to nothing in Queensland or New South Wales and $6,600 in Western Australia.
Mr. Lucas said the impact of the Rann Government’s broken promises and high stamp duty policy is that first home buyers are being driven out of the market.
Australian Bureau of Statistics Housing Market figures show that first home buyers in 2001 comprised 20 per cent of the total market, but have now dropped significantly to only 13 per cent of the total market.
The following table shows that first home owners in South Australia comprise a much smaller percentage of the total market than in any other state or territory.
% of first home buyers in total market (Column 2)
“The fact that South Australia is now receiving between $200 and $400 million more per year from the GST deal compared to the pre GST deal means there is more than enough capacity to provide much needed relief to first home owners.
“Mr. Foley’s comments on affordability are another example of the Rann Government’s arrogance and of it being increasingly ‘out of touch’ with the stresses facing long suffering home buyers.”
Interstate Stamp Duty Comparison:
Stamp Duty – $300,000 conveyance (Column 2)
First Home Buyers Stamp Duty – $300,000 conveyance – after concessions (Column 3)
SA $ 11,330 $ 11,330
Vic $ 11,810 $ 6,810
NSW $ 8,990 $ –
Qld $ 3,000 $ –
WA $ 10,700 $ 6,600
Tas $ 9,550 $ 5,550
NT $ 12,150 $ 4,134
ACT $ 9,500 $ 6,770